The developer owned by Austrian investment fund Immofinanz, has various plots of land in Bucharest and other cities it could use to build about 20,000 homes, but started work on only 1% of this figure or 200 homes.
Medium-term plans are to triple construction pace but it would need 30 years to develop all the land it has. Adama has sold about 100 apartments in the last 20 months and has 400 left.
It set out to reach a 600 apartment pace a year by 2014 or 2015, said Andreas Holler, a member of Adama’s executive board. He added those who develop now would be the first to have the right product for when the market recovers and the apartments available at the moment are too big and too expensive.
The company has recently chosen Bog’Art to build two apartment buildings with 210 apartments in the Optima and Edenia developments in Titan (eastern Bucharest), a EUR14 million investment.
Prices will be EUR820/square meter and EUR900/square meter excluding VAT, which means profit will stand at about 20%. It would be foolish to start building something without at a margin of at least two digits, Holler said.
(English version by Loredana Fratila-Cristescu)